General Motors to Reward White-Collar Workers with Generous Bonuses

VOA Breaking News
Voice of America
February 11, 2011 at 1:05 pm

GM and Chrysler accepted a combined $63 billion in emergency government loans in 2009, when both companies were on the brink of collapse and forced to reorganize under bankruptcy protection. Senior executive salaries at both automakers are restricted under the conditions imposed by the government.

By comparison, hourly wage earners at GM will receive just over $3,000 in bonuses, or five percent of their base pay, while Chrysler workers are due just over one percent of their wages, or $750 each.

The bonuses are being given ahead of contract talks between the United Auto Workers and the once-vaunted “Big Three” U.S. automakers — GM, Chrysler and Ford.

Bloomberg also reported that Ford will pay some of their salaried employees bonuses equal to 10 percent or more of their base pay. Ford did not accept any emergency loans from the U.S. government.